What's Going On With Nio Stock?

Nio Inc - ADR NIO shares are trading lower by 4.57% to $12.31 Monday morning. Shares of Chinese EV stocks are trading lower after competitor Tesla Inc TSLA lowered some Model Y prices in China.

Tesla's price reduction creates heightened competition in the Chinese EV market, where NIO operates. With Tesla's strong brand presence and global reputation, its price cuts might attract potential NIO customers, leading to concerns about NIO losing market share and facing intensified competition.

Tesla's pricing adjustments might also be seen as a response to broader economic conditions or demand trends. Investors could interpret these actions as a sign of potential challenges in the Chinese EV market, affecting NIO's stock.

What Happened?

Tesla announced in a Weibo post that it has cut the starting prices on both Model Y Long Range and Performance versions by RMB 14,000. While the Long Range will now start at RMB 299,900 ($41,403), Performance will now be priced at RMB 349,900 ($48,306), the post said.

The company also announced a limited-time insurance subsidy for inventory Model 3 rear-wheel drive vehicles of RMB 8,000 starting Monday...Read More

According to data from Benzinga Pro, NIO has a 52-week high of $22.74 and a 52-week low of $7.00.